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With the tablet market growing, more and more companies are looking to carve out a niche. While the iPad is top dog right now, there is plenty of room for others. This is where the Google Inc (NASDAQ:GOOG) Nexus 7 comes into play.

Despite the fact that the search engine giant has not had much past success in this market, the future looks bright. Whether or not the company is able to push a product that takes top honors is yet to be seen, however, they are hoping for the best.

According to a recent report by Digitimes, the second generation Google Inc (NASDAQ:GOOG) Nexus 7 is not going to compete directly with entry-level tablets. Instead, it is going to step things up a notch and go head to head with the top devices in the industry.

Here is a brief excerpt from the article:

“Google’s second-generation Nexus 7 tablets are estimated to be available in the retail channel in July with a 16GB version priced at US$229 to avoid competing directly against entry-level tablets, according to sources from the upstream supply chain.

As first-tier brand vendors have been trying to expand their sales through price cuts, Google is not looking to follow suit, but will instead focus on defending the US$199-249 segment of the 7-inch tablet market and target competitors such as Amazon and Apple, the sources said.”

As you can see, Google Inc (NASDAQ:GOOG) is not shying away from the two companies that are known for owning the industry: Apple and Amazon. Instead, it is hoping to take on the competition, head to head, with its new Nexus 7.

If the pricing estimate is accurate at $229, this Google tablet is going to be slated in the mid-range segment. It is anything but entry-level, but at the same time it is not going to cost nearly as much as an Apple device. This puts Google Inc (NASDAQ:GOOG) in a unique spot, and one that could position the company to grab onto more market share in the near future.

It will be interesting to see how the public receives the Google Inc (NASDAQ:GOOG) Nexus 7. Are they going to enjoy the fact that the price is lower than the competition, such as Apple, without going all the way down to the entry-level segment?